>> i hope they wake up in washington because really the country is -- >> we need people who don't have jobs -- >> the country is poised with these great natural assets we have. >> technological. >> technological revolution. what's going to come out of the ground with the fracking and everything, it's amazing. >> richard, thank you so much for being here. that does it for us today. join us tomorrow. right now it's time for "squawk on the street." ♪ one day more >> we are one day away from twitter's debut. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. futures have a decent tone, despite some stocks that will struggle at the open, like abercrombie, like tesla. and europe got a boost from a

blowout number out of manufacturing out of germany this morning. twitter set to price tonight, begin trading tomorrow. right behind us here at post nine. >> tesla shares, they're skidding today after vehicles delivered missed expectations. earnings and revenues did come in ahead of consensus. >> abercrombie and finch posting a seventh consecutive quarterly drop in guidance. >> our guest says he knows who the next microsoft ceo will be. >> and twitter will expect it sell 70 million shares between $23 and $25 each. tune in tomorrow for our special coverage of the wall street

debut on twitter. it is above the fold today for "usa today," retailers talking about going from 45 to 48. >> may i just say their coverage has been exemplary. every article they have -- yesterday was terrific, today was terrific. you have to read "usa today." here's what worries me. a few weeks ago i sat here and i said this could be $20 billion. at that point it was 10, 12. people said you're crazy. when i went from being the high man to the low man in two weeks, this is worrisome. the guy who has done the best work was quite critical. ron pack of sun trust, said he has an ultimate $50 target. i ridiculed him.

but now his $50 target could be reached or at least almost vested the first day and that worries me. >> it's dick costolo under an umbrella with the headline "the twitter jitters." it's getting quite expensive, true? >> yes. i went over zillow, yelp, pandora, all of the social and mobile ipos. every day, every one of these the opening price was a sucker's play and over a year it was cut in half and you could get in at a much lower price. ultimately, yes, they all

realized their price. you may say i don't mind getting the deal and averaging down. if i got shares of the stock when i used to be a hedge fund operato operator, i would flip it. >> i was talking to some of those hedge fund operators, you say i'm going to call in my favors get as much of an allocation as i can but i've also heard a few more nervous tone from some, even for going in as much as they are. it may have gotten so frothy that there's a bit of concern. that it may not live up to the billing. let's see. >> the trajectory, you know because you've done more work than anybody, the trajectory is clearly positive. at the same time, everything has to go right. when everything has to go right, it tends to be more difficult. we know there are some good articles today about how goldman has the real skinny. you know what, the people who are buying it at the opening,

they may just be this thing, my kids like it, i use it, it's not always that simple to like and use and buy. as you know from when facebook opened at x, goes 32, next thing you know, it's at 17. >> they increased the price, increased the float -- >> they did everything to mess it up. >> essentially learned about mobile after going public. >> almost no mobile. then nasdaq did a huge favor by completely botching the open. >> that's not going to happen here. goldman is not going to screw this up, the nyse is not. >> listen to you, mr. guarantee. >> right, i know. we'll see if i'm right. my expectation would be you're not going to screw it up. >> anthony is the finest niyse analyst. i can tell you how long he's been around. >> he's come up with us. >> he was the cfo of the

greatest brand of the world, cfo of the nfl. there will be no personal foul. >> in that is a cautionary tale, though, the journal today talking about the gap between various analysts and the information they have. not every cellside report is going to be created equal. >> i hope yesterday there were more tweets than the day before because we know there were not any more facebook -- more profitable facebooks. if you go back to those days, literally the days since the road show began at facebook before it came out, the acceleration to mobile was extraordinary pip saw it at the little street. we would come in, it would be -- it was -- it was 22% mobile yesterday, it's 325%, it was aberration, and then 27%.

no one knew the smartphone/cell phone revolution. and they seem to recognize the value. they can make money. >> let's go on to a company we rarely talk about here, tesla. >> huh? >> that was a joke. >> deliveries for the period did come in below some analyst forecasts. they see profits to be about consistent with the third quarter and that would be below the estimates that are out there for that quarter. that's so interesting. i mean, it seems to be in some way that they're not going to make as many cars as they could because they got production constraints when it comes to the batteries. >> not their fault. >> you'd have to blame everyone. >> can you blame verizon? >> yes because of the web site. >> they are part of the problem. >> that's a facetious thing.

on twitter it will be that cramer is an idiot. the quote of the night, production constrained not demand constrained. i heard the rumor -- you were thinking 5,500 cars. there are in elon musk speak, that means 6,500 cars. this is called the whisper. when you start talking about you mention china, you want to hear that someone bought a thousand chinese cars and just giving them out to the communist party. didn't hear that either. >> he only guided to 5,000. it came in at 5,500. >> you got to do more than that. the importance of sandbagging is you got to sandbag me. when you say 5,000, what does that really mean, david? >> 7,000. >> thank you! the prosecution rests. >> of course he had already talked about the multiple being something that not even they have the right to deserve. the 52-week low on this stock is

$29.93, right? that's going to get lost in some of the headlines today. >> you have to divide by ten. had is $15 stock. i want to caution people, the analysts, they're not backing away. jeffreys, it was a quarter of remarkable progress. now you're going to start talking about $20 billion. the dream is there. the dream -- >> the dream remains. >> the dream remains. >> keep hope alive. >> he's talking about creating a battery factory of his own somewhere. >> he may do that. billions of cells. like hamburgers. billions and billions sold. >> it's a cold stock, a few weeks from now they could look back and they might be able to ratchet production, the battery product can be sold. and some new analyst would come out and use a $300 price product. you can't disappoint when you're trading at that level. this is like bezos saying you know what, look, we were going to move -- we didn't sell as

many up front, instead of millions and millions of prime. remember that on the call? or it might be like netflix saying orange is the new black. no glitches, no glitches. tesla had some glitches. >> speaking of glitches, abercrombie and fitch is down, the second consecutive quarterly sales decline, cease now double digit drop with holiday sales in the way. stacy said it makes ron johnson look good. >> i love stacy. that's quite a benchmark. ron johnson may have been the single worst executive we've seen in retail. even to put jefferies in that camp is extraordinary. these analysts are ever hopeful. wait till the analyst day.

what's he going to say on analyst day, that he sold a couple more hoodies? maybe the ripped body campaign, maybe they need to go into a little more geriatric thing. this is not working. this company is just the poster boy for not selling. gap stores is not selling apparel either. they ought to open a michael kors store because when you go over that michael kors, do you know how many times -- when my late mom, when she was wanting to talk about who's with it, she talked about the term "jet set," jackie o. was jet set. they need to merge kors and a & f? >> do you take aerpostale out to the wood shed today? >> you have ever been to those stores? >> no. >> it's amazing, they ought to merge.

they all have green flip flops. >> david, you may want to focus over here. >> i'm focused. >> we're on tv. >> is that what we're doing now? >> when you go to shopping with your daughter, like i like to do, she's like, dad, hollister is horrible and a week later she's like hollister is fabulous. the fickle nature of teens is extraordinary. >> which means what, a & f can come back quickly? >> probably can. maybe the top-level guy ought to go. maybe this is time for him to spend a little more time, family-oriented, maybe he should be more family-oriented. william weldon became more family-oriented and that helped. the ris per dal $2.2 billion fine, that was staggering. >> that was staggering. we didn't cover that very --

>> it kind of came and went. >> when you say you didn't do anything but we're going to pay $2 billion, i mean, now you're starting to get into this whole new world, like nobody did anything but we're still going to pay $2 billion because we did nothing, we're totally innocent. >> nothing says i'm innocent like $2 billion. >> that is the true sign of innocent because they did not pay $10 billion. how much is jamie dimon going to pay to prove his innocence? >> jim's on fire today. i like that a lot. >> because of twitter. >> when we come back, wreck sherlund has an action plan for whoever becomes microsoft's next ceo. he'll tell us who he thinks will take the top job. and we'll talk to an investor in the company who helped create the retweet. the open just about 15, 16 minutes away. don't go away. [ female announcer ] it's time for the annual shareholders meeting.

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next ceo could be over soon. our next guest says ford motor's chief executive al mulally will likely be named ceo of microsoft by december.

rick just raised his price target on microsoft from 35 to 40. ford stock acts like he is going. >> i've seen a lot of denials from mulally. i think it's gone on long enough. a non-denial denial is not good enough for me. i think he's microsoft's top pick and likely he'll be the next ceo of microsoft probably in the next month or so. >> that's the missing piece of why this stock went from 17 to under 17 in the last quarter. i think you're right. you're saying estimates which are now pretty low could be as much as dramatically higher if

they get rid of bing and xbox. how come they could never make money with xbox? >> there's three things we've outlined. first of all, the company needs focus. they're doing way too many things. in the consumer space, they're not making money at xbox, not making money at bing. if you get rid of both, you could enhance earnings 10% to 15%, 30 to 40 cents on base of $2.70. the other thing you could do if you brought in mulally, instead of growing operating costs 5% next year, cut them 10%, it's going to add 50 cents to earnings. if you bought back just 10% of the stock, that would cost you about $30 million. you've got $62 net of any incremental tax you'd have to pay for repatriation and that would enhance earnings 30 cents as well. not that they would do all of these things but i can get

earnings from 270 to 380 just from those three simple things and those are pretty easy to accomplish. >> you think those are things, rick, mulally will actually do? i'm not completely convinced it's going to be him. if it is, why is the bored embracing someone who doesn't have the technology background? >> we're arguing as bill gates is aware of that, he'd like to complement mulally or mcnerney from boeing or green from alcoa. i don't think any of the inturn candidates are seriously in the running. i think it's these three individuals. i think mulally would be

complemented by someone like bill moritz. >> to what degree do you think mulally, if he is the guy, makes some strange, starts splitting a apart some units? >> if he comes in and says what are we doing to bing? that's a no brainer. xbox, they lose about $2 billion a year in xbox. it is no strategic value. they thought they wanted to control a living room ten years ago against sony. well, guess what, smartphones and tablets came along. that's what controls the internet now. could you buy back 10% of the stock as well, but i think ballmer doesn't want to stay around after say mulally or

whoever comes in, it's going to be a pretty painful process to be second guessed constantly by the changes they make. he owns 4% of the stock. i wouldn't be surprised to see microsoft take the $12 billion in borrowing capacity and take him out of the stock. that would enhance earnings 12 cents reducing the share count 4 percentage points. the harder thing to accomplish is what direction do you go to fix the business? we outlined a number of things we thought the company could do in at that regard as well. >> never let it be said rick doesn't have a clear point of view. >> i remember we brought in microsoft and goldman, me and rick and ballmer was with me at the crimson at harvard. rick, you were talking about blowing the company up. you can't -- please don't talk about mcnerney. these are the reasons why ford

is moving and boeing is moving. i hope you're wrong. i hoep you'll be right. >> cramer's "mad dash" is next. futures looking okay here. ♪ take it easy, take it easy ♪ don't let the sound of your own wheels drive you crazy ♪ clients are always learning more

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♪ we're ♪ we're talking about money, money, we're talking about money, money ♪ we're talking about money, money ♪ >> five and a half minutes to the opening bell. we have a little bit of energy here. we have barracuda. "mad dash" time.

let's talk ralph lauren. >> david, it was the best of times, it was the worst of times -- rockefeller lawyalph l blowout number. masterful. people like to buy expensive things. >> what about apparel? i thought apparel is terrible? >> this isn't apparel. this is about feeling and looking rich. there's two classes of people, there's the gatsbys and everybody else. this is the gatsbys and it's working. >> the f-corp is not necessarily for the gatsby crowd. >> no. but they've got some expensive brands. tommy hilfiger is selling well in you're. you know what the story is in europe by manny tyirico?

they feel these things are built to last. >> ralph lauren could be back. a lot of shorts in ralph lawyer i don't know betting they would stumble. they didn't stumble this time. >> not that big a float this time between him and -- >> braun? >> yeah. >> we have a big ipo. it not tw it's not twitter, though. stay with us. [ male announcer ] what if a small company

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♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. live from the financial capital of the world, a shot of post eight where barracuda will start trading in a few moments. a couple new issues taking place today. you have thoughts on "cuda"? >> there's a lot of software

cloud security companies. i'm starting to get a little nervous. i once caught a 55-inch cuda off the coast of mexico. >> i knew there was a fishing story in there somewhere. let's look at the s&p, we're coming off a down day yesterday. here are the big boards celebrating its big day, barracuda, cloud security and storage systems. and on the nasdaq, premiere, a health care technology company ringing the bell remotely from charlotte, north carolina. very nice. are you saving time warner, david? >> i'm not. we can talk about it. looks like it's going to be down slightly. revenues were flat but they did seem to do a good job contains cost. they had a favorable tax rate from the quarter from what i understand. but not a bad quarter from time warner. it's $62 billion market cap for this company. it's cable networks and a film

studio soon to spin off time inc., which we forget about. and that will be interesting and challenging. we've said this before but we're going to have a number of pure play old media companies, i hate to say it, but in news corp already, in time and you've also got one coming from tribune. they're also doing a split, if i recall. >> broadcast guy, cable guy saying what are these publishing assets doing on my books? >> although news corp was at an all-time high the other day. >> if you believe they're going to figure it out digitally, these companies, it would be interesting. that stock is flat right now the quarter was a decent quarter. perhaps some people not that happy about the revenue number but -- >> but the buyback. >> but they had strong margins, strong cost containment. >> these companies, whether it be aol, time warner, viacom, they are addicted to buybacks. >> addicted.

it's a key part of why the stocks have been so strong, as you point out. they generate a lot of free cash flow, they buy back a lot of stock. by the way, direct tv, also you can put into that camp will be speaking to the ceo of directv in the next hour of "squawk on the street." >> content throws off a huge amount of cash. did you see tnt? he says i can run "shawshank redemption" and "the fugitive" and people will watch it every time. >> it's physically impossible to turn off "the fugitive." >> i don't care, get busy living, not busy dying. >> the likes of papa johns, open table -- >> open table, blow away. all these new restaurants signing up, just when you thought that open table couldn't do anymore, 23% increase in

restaurant base. i may have to list my restaurant with open table. >> they beat by 8 cents, at 50 cents, sees the current quarter at 53, street at 52. papa john, they raise their forecast, go to a 2 -1 split. >> it's been in a head-to-head battle with dominos. pat doyle says there's room for everybody because it's taking out the mom and pops. a lot of people thought google will come again, a lot of people thought yelp had open table in its sites. this company holy grail because it fills the seats. you want open table at your restaurant. >> and a good mobile app. you'd expect a big number it have. >> open table is the way people

book restaurants in this country, except for those of us who go in and wait in line. >> you do that? >> at olive garden. >> you wait in line at olive garden? >> i've never been able to cut the line at olive garden. >> how about chipotle? you can't cut the line at chipotle. >> the seats where can you get the shake shack delivered to you, they cost about $12. just wait a few weeks and they cost $12. >> the funniest line coming out is i love him as a colleague, may he never root for the teams that i like. >> that's a good one. >> zillow is up. >> this guy is all in.

his tweet right before the conference call started was "let's get this party started." this is the new ceo, right? whether it's playing harp for barracuda or taking a red icon fre -- red eye conference call. >> he said "the president loves zill zillow." it's real estate porn but he said that's not the reason that it's doing well. he said it's the return on investment. i said zillow is taking over the worth. >> levels somewhere around august, 158.50, does any of that matter given the things you've said about cult stocks in general? >> the next stock -- he'll

finish the battery -- solve the battery problem in the next quarter and put all the shorts to shame. but you got to be perfect. i would have signaled if i were him that there were some battery problems. i just would have. i would have said, hey, listen, we're having some battery problems. that's why we can't meet demand. it would have helped to know that ahead of time. >> stock is up 370% this year, not too bad. it's even better than best buy, which we always like to take a look at. >> best buy? >> not that they sell teslas there. richard schultz keeps selling stock. why wouldn't you? >> he tried to buy the company in retro expect. did you see "call of duty"? >> i saw ati this morning. it was a billion plus in retail plus. >> is there a dalai lama of

"grand theft auto"? is there one of these that is more of a non-violent peace in our time kind of thing? >> i don't know. >> have you seen the size of guns in that thing? >> i don't know. >> the guns are amazing. incredible guns. >> we don't have video games. >> good. stay that way. >> we're going to try. >> brought the conversation to a complete halt, didn't it? >> i meant the guns. never mind. let's move on. let's move on very quickly. >> let's check in with pisani with the dow up 60. busy floor today, bob. >> i am surrounded by ipos. that's the good news. the bad news is twitter is sucking the air out of the ipo room. that's sure the way it looks to me standing here. we got $4 billion in ipos this week, the busiest week since 2006. some priced at the low end, one

below. one didn't price right. there's three or four magic words, social media, biotechnical/cloud and internet security. behind me i'm waiting for barracuda. it's internet security, one of those magic spaces yet priced at the low end of the range. right now indications are higher than that at $20 to 2. low end was a little bit of a surprise. maybe people are getting tired of security, ipo spaces. they do have -- let me show you avianca, $17 to $20 price talk opening at $14. some of the ipos didn't even happen yet, mavinir systems.

they were supposed to price last night, they never made it. they don't say why. even some of the yield plays aren't doing so well. it's hard to see that out there, logistic partners, they own crude oil. this is one of the big yields, 7 3/4%. arc just opened at $19 and it's trading at 19.01. karyopharm therapeutic, a week that would have priced above the price talk. that's all right but not particularly great. we have wix.com over at the

nasdaq. everyone is asking me why did they do that, stuff all of these stocks 16 of them in a week with the biggest ipo of the your with twitter. why have such a crowded market in one week? obviously not the companies. i say your friendly ipo underwrating. you've got to make hey when the sun shines. you get the ino business is a follower. it is not a leader. the market's at new high, pushing through as much as they possibly can. if you want a little more cynical comment i've heard a number of times from trading desks, the underwriters are making it clear to people you don't like all of this stuff and it if you don't take it, perhaps your twitter allocation might get caught. a little cynical,

conspiratorial, but that's the way it works sometimes. >> that's right. you have to help us out on this one and we'll help you out on that one. that's the way it works. >> let's go to rick santelli. >> good morning. look at a two-day chart. various parts of the yield curve a little out of sync but being a good way to play the curve. yesterday's high yield was 1 hadn't 40. right about where that 1.39 yield was on that retracement, which was already hit and surpassed by the 10s, we talked about how that's going to bring about curve streetening and let's go all the way back to august of 1022011. we're at the highs in 26 months on that spread. you have to pay attention to

that. the street loves the 5-year so i steepening may continue. if you look at the rest of the curve, you can clearly see how different the long end. remember, the fives were below both of those. it's difficult to monitor. we know the ecb meets tomorrow. if you look at a two-day chart of euro versus the dollar, i think trying to handicap whether there's an ease out of the ecb, done. 138 is the area of recent trade, now we're hunkered down at 135 most likely going into tomorrow. the pound version of the dollar, a bit of a different story. yesterday they had the service sector icism at the best level they had in 16 years. we continue to see the pound building versus the dollar. carl, back to you. >> thank you very much, rick santelli. >> it's the latest technology

company to go public betting on the cloud. the ceo, b.j. jenkins will visit us in just a few moments. the dow is up 64. "squawk on the street" will be right back. ♪ ♪ "squawk on the street" is living large in nyc, literally. take a look at our awesome bill board. you like it, don't you? now can you have a photo version it have signed by the entire "squawk on the street" gang. all you have to do is guess friday's non-farm jobs number. tweet your estimate to "squawk on the street" and don't forget the hash tag oil nail your number." you have to be at least 18 years o enter. you have until 8:29 a.m. eastern friday morning. good luck.

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live shot of post five where we're waiting for barracuda to open. range of 18 to 21, priced at 18, indicated 21 to 23. when that happens, we'll bring it to you. in the meantime "six in 60." >> start with vivus. this is an obesity play. be careful, speculative play. >> and cvs. this is a beautiful quarter. i think it goes higher. >> cutting buffalo wild. >> i think this is wrong. the company has a strong story. >> hain. >> this is what you want to be in. specialty organic. >> pioneer.

>> pioneer, one of the largest. >> and encana. >> people were in if for the difficult depen dividend. nice to see them make a comeback. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

we we finally got an opening trade on barracuda, 22.51 i believe is the opening. after pricing at 18. we've been going over the business model. some pretty high-profile customers. >> aol, jaguar. you'll see a lot of these guys -- seaman's corporation, boreal, star bucks. this is a deal they price right for people. >> the space is a little crowded. seems like the other day fire eye was in the spotlight. >> everybody's in it. but let's hear. let's find out. >> we're going to talk to the

ceo in just a moment. >> you know what's interesting, carl? there's still money being made. usually by this time there would be fatigue and one of them would open down but the tech companies have all worked. the tech companies have all worked. >> though avianca will not be used as a poster child of high flying ipos. >> no, no. didn't have. pure techs have been rather incredible because they price them right. >> b.j. jenkins is joining us this morning, the president and ceo of barracuda. nice model and clients you cater to. walk us through the basics. >> we focus on a segment of the mark that we feel is not understood well, the mid-market

customers, 100 employees to 1,000 employees. we solve problems for them in a very elegant and simple way. >> b.j., the clients you have are anything but small, nascar, the homeland security, fedex. i see you do boston celtics, too. but those are huge companies. so you managed to snag them too? >> large companies at times overbuy and get overcomplex and they realize they need simplicity, too. this is why you see the rise of things like cloud that simplifies some of the infrastructure. >> i had palo alto on "mad money" and they say it's become very cut throat. what's different in your pitch? >> palo alto and fire eye, they're chasing after the largest enterprises, they have to deal with every legacy application, they have to have

every bell and whistle on their product. our customers only have a few it people and they have to deal with every part of the stack. think of your tv remote you've got at home. it's got 40 buttons. i use channel up, channel down, volume and mute when somebody is yelling at me. we make it easy for customers because they're exposed to security -- >> it's a constant consultation, in a way, in which you're also selling them product. is that fair to say? >> i think a lot of our customers have these problems and they have to solve them right away. one of the things we do is we offer a subscription service so it's infrastructure as a service. and when they call us today, the service is on tomorrow for them. it can often be deployed in less than 15 minutes. if they don't like it, we give them a 30-day right of return. think of this in the i.t. industry.

no one is out there saying our product sells itself. >> 30-day money back guarantee. >> 30-day right of return. we think zappo copied us in this. we brought it to market first and they copied us in retail. >> as the subscription portion of the business grows, we believe we can expand over time. >> is churn significant? >> always have churn. we go over the top with service. again, if you think of this mid market, you call us, you get a live important at barracuda that's responsible for solving your problem, whether it's ours or somebody else's in the environment. it's hard to walk away puerto rico when you love the product

and -- >> we provide web application fire walls that prevent a web site from automated attacks from bot nets, we do backup and a rife from -- >> same nascar/nhl? >> they all enter into our barracuda system in one form or another. it may be storage, it may be security. what we try and do is once they try one product, we have 14 offerings, and we try and make a barracuda shop. >> what are you going to do with the money you're raising today? >> the big part of us going public, we've been cash flow positive since the three months after our three co-founders founded the business. we have a healthy balance sheet. for news security there's a legitimacy. we're growing fast overseas. these companies that we partner with, they want to know you're going to be around. we have in time where we see

complexity in our target market. we do a mix of internal innovation and we do some technology acquisitions that will fit in the platform. these have usually been prerevenue or low revenue and we make sure it fits in the barracuda model. >> we'll keep our eyes on you guys. congratulations again, b.j. b.j. jenkins for barracuda. caught us on a nice day, too. dow sup more than triple digit. one day to go before twitter's big wall street debut. we'll meet an investor in the company who helped create the retweet. do not go away.

welcome welcome back to "squawk on the street." september lei, leading economic under ka indicator came up by a whisker, up 0.7. the european currencies are starting to really do much better against the dollar in the last half hour.

maybe at least with regard to euro, the anxiety about rate cuts over the next several meetings may be priced in or at least reached a fully priced equilibrium. we'll have to pay attention to that throughout the day. simon, back to up. >> thank you very much. rick santelli in chicago. stocks in a record territory, the dow hitting another all-time high. let's get analysis from where we are. john is an economist and analyst with lpl. what would a successful ipo for twitter do for the economy? >> the market is better when it's focused on fundamentals. markets love fundamentals, they look sayer buybacks. a lot of investors are benefiting from those. i think all that kind of wraps up into a market that when it's

focused on the fundamentals, it does well. when it's distracted by the noise out there, it doesn't. >> lloyd blankfein said it's not cool to be optimistic but we've chewed through the issues to battle the point you're making. with an s&p up 23% for the year, is the retail investor right to come into the market? >> you want to dollar cost average in but if you look at things like valuations, you're only 14.5, 15 times, it's still fairly valued, you're still in the middle of the economics and earnings cycling. even though the market is up a lot this year and up a lot since 2009, it's probably not too late. >> john, as much as it might feel awkward to buy at these levels, history will tell you when the past couple of months

have been positive, the rest of the quarter is good, too, correct? >> that's right. we've had 31, 32 new all-time highs this year. if you're waiting for a pullback, that's a good buy the dips opportunity waiting on the pullback but we haven't had a 10% pullback in quite a long time. i think you might wait even longer for that. if you haven't been in yet, it's not too late. don't do it all at once. do a chunk here, chunk there and look out for the earnings reporting seasons. that tends to be when all the gains in the market are. >> there's a lot of attention on this major research paper that will be presented to the fed. if the fed says, look, we're going to keep short-term interest rates at zero, not until unemployment is at not 6.5% but 6% but in turn we may

taper instead december, what does that mean for the market? >> i think the fed is getting kind of sick of quantitative easing, i think the market is getting sick of hearing about tapering. maybe it is time to rip off the band-aid on quan tative easing. while initially that might cause some market disruption, longer time -- i think that will be a good thing longer term. >> john canally joining us. thank you. >> tesla beating the streets by a penny. company's delivery numbers were lower than expect. phil lebeau joins us. >> reporter: this is a third quarter where they reported better as their own guidance but

not as good as any were expecting. you mentioned delivery. for the third quarter they delivered 5,500 model s, some were talking about 5,700 or 5,800. there was some of the disappointment. the gross margin, however, at 21% is a little higher than most on wall street were expecting and now they're planning to deliver 21,500 this year. and deliveries are being increased to europe and to a certain extent pulling back a bit in terms of delivering here in the u.s. what about china, who many view as a great growth market? that will start in the first quarter of next year and already elon musk is saying they're

seeing great interest -- they're more on the supply side than on the demand side. >> we're supply constrained not demand constrained. we're working hard to address the construction constraint. the thing that people quite don't get is we're different in that fundamental way from other car companies. it doesn't make sense for to us do things to amplify demand if we can't meet that demand with production. >> so what's the supply constraint that elon musk is talking about? he's talking about the lithium ion battery cells. they cannot get enough to meet the demand that will go into the conference call. he said they are looking at

building a lithium battery factory sell that will give them an enormous simply this that is one reason why -- who are pretty ot mystic about where tesla is heading. that said, carl, you look at the stock, we got ahead of ourselves in terms of expecting big numbers from tesla and that's why the stock is down today. >> indeed. after coming a long way this year. our phil lebeau talking tesla today. here are two things worth retweeting this morning. twitter is expected to price shares of its big public debut tonight after the bell. second, joining us here at post nine is the man who helped create the retweet. he joins us here at post nine to talk about the big day tomorrow. good morning. welcome. >> thanks for having me.

>> you actually have some shares. you have to be watching this relatively closely zip do. i think of myself more of bearing witness to it. it's not so much the payout but where twitter is goingneck. >> the whole this evening is very improbable. the first year is about the triumph the community and ga engaging the bloggers and relucta reluctantly mainstream media. >> you sound like you almost can't believe this is happening. >> i can but that's why i'm ultimately bullish on the company because they've come so far. >> i think you've got 20,000 shares? i'm sorry to be so -- >> oh, no, it's through a variety of vehicles. >> if they price at the top of

the range -- i'm sorry to to be so mercenary, they're worth about half a million dollars, if they price at $25 a share. what people want to know on the finance program, are you able to sell? >> no no. >> so you're locked in? >> yeah. >> when can you think about selling? >> i've been long twitter since 2006. i will remain long twitter. >> what's the future going on like, then, in your opinion for this company in. >> yeah. what do you envision, given how much it's changed from the early years -- >> there's a phenomenal book called "hatching twitter," reminding me how much has changed and how much was etched in stone early on. i think twitter is becoming the news. it's going to be that channel. when you talk about an information network, it doesn't

have any competitors now. it has a lot of menial stuff but it also has the most significant stuff we have going on on the planet. one of the co-founders talked about twitter being a triumph of humanity. for me it's an important company to the just because it has financial viability but it really is changing the way we interact and changing almost every facet of our communication network. >> talk about the advent of the retweet. people want to prioritize all of their -- >> it's an accidental contribution. i'm a product guy, i'm not a finance guy. we had this new tool in 2006. you want to shake it, you want to see what it can do. i was fascinated because it was entirely sms based. i wanted to know what would happen if these follower network suddenly started echoing what was being said. i thought, wow, where could this

go. and seeing that now as a -- excuse me. >> no. it's now one of their -- it's how things go viral. >> it's a vie rat coral communi. was it hard to code? hard to program? >> no, i'm a user. i made a request. i said, please, echo this message and people did it. >> can you meld that with monetizing down the line? if they came to you as a product guy and said we need to monetize this, can you help us? >> i think they did a great job in turning this into a discovery tool, too. >> where are you going to be tomorrow morning at 9:30? >> i have no idea. i just flew in. >> you have to be watching -- >> watching cnbc. >> there you go. >> that was the right answer.

>> it's a corporate tale. we appreciate you coming in to give insight. >> up next on the program, the chairman and ceo of directv will join us here right here on post nine for an exclusive david faber interview. we'll hear what he thinks of the fate of the media industry right now. ♪ [ laughter ] ♪ [ female announcer ] each one of us is our own boss. ♪ and no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future.

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welcome back to "squawk on the street." boeing is flying at an all-time high, reaching an agreement where boeing will get a break from the state and eight additional year of labor peace. boeing shares soaring higher. >> directv gained in third quarter, helped perhaps by the time warner/cbs dispute. can the satellite company continue to gain market share? joining me is the ceo, nice to have you. >> i want to start off in latin america. the numbers yesterday strong in the u.s. but there was concern about latin america. the growth rate there is 5.4 %.

a year ago you were doing 16.7. why is it so slow or slowing? >> you've seen the macro economic conditions in several of the companies down there shift a little bit, in particular brazil. consumers in general pulled back a little bit. i think they got ahead of their skis on debt. different kind of debt there, they don't have mortgages, more automobiles and applies. and venezuela and argentina, we had similar challenges as well. >> is that the new normal? >> i've been going to latin america for 30 years and there's been ups and downs. i think you have an enormous growth opportunity. 3 out of 10 households have pay tv. we have the preeminent service, the best brand down there. but certainly you look at

inflation and some of the macro conditions, one has to be i would say balanced in terms of how we're approaching the business right now. so i'm not surprised that we're seeing a little bit of a slowdown in the growth, but frankly, in local currency, for example, our brazil business still had 15% revenue and profit growth in log currecal currency. >> you're going to take the currency -- >> you have to look at the long term. >> let's get to the u.s. you added more subscribers. some say it must have been the cbs/time warner dispute. >> less than 5%. >> you say you make a point of not going after these guys during these disputes. why? >> what goes around comes around. retransition fees, it's an unfortunate part of the landscape. we don't think it does any good

for distributors to go after one another. >> your revenues were up 4.7%. that seems unsustainable. that's not a great model, is it? >> it's a challenging model for a all disputributors. if we settle back done to where before i became ceo, in the 4%, 5% range, we'll be fine. >> can that really happen? >> i think we're all trying to challenge as best we can right now. but, look, we're prepared and planning for elevated content cost over the next couple of years. i can look at our contracts and what's coming up over the next

two years in particular and what we're having to do is get smarter about productivity across the enterprise, go after incremental revenue, which all grew double digit in the quarter and. most importantly, keep loyal customers. >> one that. >> you've said it's not just about price there or economics. it's more complicated than that in terms of renews. you think it comes up next year. >> right. i think dij at that time -- in every day we were involved in, there's a question about how far are you going to go on fobil? everyone has a slightly different category. next year is our live clips, put

your favorite players in, linking it to the nfl site for fantasy football -- >> when i hear the rumors that they're not going to renew or google will come in and top them, what should i be thinking. >> we get rumors all the time in our business. i got to tell you, would i pay much attention to those rumors. we have a great partnership with the nfl. next year is 20 years. they were good for us and with a terrific campaign to get football on your phone. i'm excited we can continue to build that franchise. but if you look at our tv everywhere platform, you know, probably the best example of what you can do is our nfl sunday ticket platform when you get the mobile rights. >> something else -- some of your shareholders say it would be good for directv would be a

deal, a merger. the name we hear all the time is dish. you and i have talked about this through the years. but i'm curious, when you think about it right now and those who say they don't want to take risks at directv, they're happy to take risk, buy back stock, they won't do it. would you consider it? >> i think it's in the reverse order. i think you have to answer can you get it -- >> i got u verse, you gotifyos. >> i would argue if you look at content costs and other factors that the world has changed quite a bit and consolidation in the industry could be pro consumer. nevertheless, you have to make the case. probably one of the critical questions would be apart from the strategic synergies, which certainly would be there, i've always said that, is can you credibly build out a competitive

broad band service that would change the game. and it not yet clear to me you can. clearly charlie is pursuing -- he's got some spectrum. weep got more than that in brazil. you need more than that in the long run if you're going to do something competitive. right now we're focused on building our business. the strategic synergies. >> the final question again on something else in the industry, a air, is it a possibility you'd stickaryials along with and avoid -- >> i don't think that specific ideas makes sense. they're charging $12 and retransmission fees aren't $12.

that doesn't make sense what i was trying to say was we used to have antennas and a built-in capability in our boxes. from the broadcast channels. if retransmission fees continue to grow at 50%, 100%, it is a point that it makes sense for consumers. so i frankly think it will be driven by consumers if a big chunk of customers that get the broadcast for free, that's a problem fors -- for the battles when the supreme court comes to down. down. >> thanks very

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the the health and human services secretary kathleen sebelius is back on capitol hill testifying this time before the senate finance committee about obama. bertha coombs is live with the latest on this particular hearing. good morning. >> reporter: good morning, simon. max baucus, the chairman of the house, the senate finance committee, this morning saying he was disappointed in how the roll-out had proceeded. he had said -- he was the one who famously said last april when kathleen sebelius was here that he was worried this would become a train wreck and there are many who would describe it as much. he did say in his opening statement that he didn't think it was time to change the person

at the head of the situation, he didn't think that kathleen sebelius should step down now in the midst of the crisis. >> some people have called for your resignation. to borrow kennedy's word, with we cannot fix the blame for the past. you need to stay at hhs and help get the system working. >> he said he was still very concerned about the administration's comments about all of these cancelled plans and he would like to hear more about that. this is something that republicans have been hammering at the administration with the president of course having said if you like your plan, can you keep it and now millions of americans having their plans cancelled. interestingly enough last night ahead of tonight's hearing, senator hatch also put out a notice saying he's concerned about the calculation of tax credits that will happen with obama care given that there had been some issues with earned

income tax credits from the irs, he's worried this will also be a plob prem -- problem. >> microsoft, a 12-year high. we talked to rich sherlund, who believes that ballmer will leave sooner than anyone expected, that the company will be blown up. >> he also indicated that bill gates will or should get more involved, which i would find to be something of a stretch. but, hey, sherlund's out there. go ahead, take a shot. >> he's added $10 billion more in worth, which isn't bad, is

it? >> let's go to sharon epperson. >> crude oil supplies road by 1.6 million barrels in the last week. that is less than what analysts had expected and it's a little more than the build that the american petroleum restaurant is what happened with roo feebd fiend 3.8 million barrels. that is greater than the decline that and mists will and pes patrioted and that has been somewhat billish for gasoline futures going into the session. also greater than what analyst himself expected. so it is refined fuels that had vepd this lift and a big part of

the reason why we're seeing gasoline prices at the pump continues to slide, we'll see if that trend continues, triple a saying $3.10 a gallon will be the national average by the end of the year. >> when we come back, zillow's ceo knows a few things about social media. he used it to solicit questions to the president just a few months ago. [ male announcer ] at optionsxpress, our clients really appreciate our powerful,

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♪ i'm coming out so you better get this party started ♪ get this party started on a saturday night ♪ every. twitter intends to send 70 million shares of its ipo tomorrow. who is getting a piece of that pie? >> if you want to get into this deal, it's likely you'll have to wait until it starts trading to tomorrow. they've divvying them up to many blue chip money managers. portfolio managers at two large tech funds told me this might be

the first time ever they get zero shares in an ipo. what will each of the banks get? in terms of fees, goldman sachs is reportedly nabbing 38.5% and jpmorgan with half of that and the rest of the banks get the balance of that. it's unclear how exactly it will shake out. when i asked one source whether the deal with have any pre-ipo shares offered to the retail investors, i was told simply they'd be better off calling their broker tomorrow for when their shares start trading. we'll have to see what happens after that. >> let's in the meantime highlight what the journal calls an information gap between the retail investors and those on the inside, the big wall street firms part of the ipo. they sat down with the executives and know the business better than anyone else. their estimates for revenue

growth for 2018 are 28% below the revenue estimates than the very few outside the ipo process. >> that article specifically relates to this information gap among analysts. some analysts have had access to management, some haven't. we did talk to some investors at the road show in new york who said there was some talk about 2015 estimates, $1.3 billion roughly for revenue, $214 million in earnings before interest, tax depreciation and amortization and the company is forecasting 322 million monthly active users. that estimate is key because that's when a lot of people expect the pendulum to swing to profitability for twitter. if you haven't had access to management, you wouldn't know that number and that's why we're reporting it to you. >> and we love you for it. kayla tausche over at h.q.

let's hop over to scott for some breaking news. >> reporter: a sell-side analyst, has agreed to plead guilty, charged back in july with providing insider information to a portfolio manager at s. oonchts c. capital, richard lee and aggarwal is with a plea agreement with the government. this disclosed in a court filing. a aggarwal is due in court on tuesday. this would bring to our total 76 individuals snared in this ensie insider capital. aggarwal agreeing to pay a $1.2 billion penalty.

>> earlier on the program, jim talked about twitter. >> his start to the conference call was "let's get this party start started." here is spencer rascoff, the ceo of zillow. jim cramer clearly precedes you. everybody was worrying about a cooling off of the housing market. you managed to battle through spectacularly. >> we had a great quarter. what's driving is audience separation. advertisers follow audience and zillow is the largest real estate country and in major cities. we're getting bigger and that's driving results. >> 34% of the market now. what is the strategy to maintain

that and double down on it? >> we spent hundreds of millions on product development to build great mobile services and a great web site and then we spent tens of millions in advertising to amplify that. we're big advertisers on tv and online. that's what's driving our category. >> you're becoming like the jeff bezos in the housing market in that every quarter is a great quarter with a loss. when does that change? >> we see this huge market opportunity in front of us just in real estate, $35 billion in advertising and amazon is chasing this huge pie of all commercial revenue. we feel like the brand white space is significant. most people in the u.s. can't name a real estate web site. we intend to change that. this is a time to lean forward and invest to grow toward the long term. >> let's talk about twitter's ipo. it's just over two years since your own stock hit the markets,

priced at 20, rose 79% on the first day. what's your advice to twitter? how much should they leave on the table? >> they've already indicated what they're going to do by raising the price during the road show. i think they're anxious to not leave too much money on the table. it's such an imperfect opaque market trying to price an ipo. it's a very hard trick to pull off. >> if the investor is not able to get in on the original pricing, you wait. for retail investors, there is a rule of thumb, hang back because it comes out of most of these internet ipos. >> it's very hard for retail investors to play ipos. there's imperfect access to information, imperfect access to liquidity of the stock. i am an avid users of the service, i have 20,000 twitter

followers, i've send 10,000 tweets, i use it every day constantly. as a retail investors, it's very difficult to participate in an ipo. >> i can site one difference with amazon, $160 billion. >> give us some time. for example, our core business is selling advertising to real estate agents. that business is at around 120 million, $130 million revenue run rate. agents spend $10 billion in advertising. we're dramatically underpenetrated. rentals and even more underpreseunde underpenetrated. >> if you don't know by now, new

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billemocrat democrat bill de blasio won a landslide victory to become mayor of new york city. what will be the implications for the city's real estate luxury market? joining us is dolly lenz. it's good to you have back. >> thank you. >> he's been clear about this, some call it the return to liberalism. is it bad for the real estate market? >> i don't think there will be a major change in tax policy. i personally think that the mayor will take under advisement how that impacts all the industries, jobs that the real

estate industry creates, taxes the real estate industry brings in. it's a huge industry in new york and you can't underestimate it. >> but he's very explicit, those earning over $500,000 a year will raise from 3.5% to 4.5%. >> he's explicit but it's not only up to him. there are other checks and balances. i believe when all is said and done, it will not happen quite that way. >> to the extent we see on the high end russians and chinese who just want to put their money that's not in the country of origin -- i don't know if they're going to care at all. they don't even live here for the most part. do they even care except if their property taxes were going to rise? >> they do care because they want to be in a new york that's flourishing. everybody wants to be in a new york that's flourishing, busy

restaurants, busy theater districts, busy everything. everybody wants to be there. that's why i don't think anyone will kill the goose that laid the golden egg. >> what's the worst case? >> worst case is property prices deflate, property is not absorbed, apartments go on the market and don't get sold? >> did you work in the 70s? no, you're too young. >> you're too kind. >> if he doesn't get givebacks from the unions, which i would argue is highly unlikely, can you bust the budget and then you have to cut police and sanitation and quality of life and then people who can leave do leave and we're looking at the apartments at the dakota that might be selling for a lot less.

>> but i don't believe, as i said, at the end of the day, mayor de blasio is a brilliant man, he won the election out of nowhere and he won't want to see the city worse off than where he inherited it. i believe he'll see all that or it will be focused on for him and he will not kill the goose that laid the golden egg. >> everybody on twitter says you're talking your book, "wishful thinking." >> no, no, it's not wishful thinking. >> i grew up in the 70s. i know how to run very fast. even in my older age. >> but you won't run. >> you can swim. >> and i can jump in the water. >> you and diana nyad. >> it's going to be interesting to watch. >> thank you for having me. >> still ahead on the program, randi zuckerberg joins us with her take on the twitter ipo. find out what she sees in the company's future when "squawk on

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the advanced decline, the number of issues moving up and down, you net that out, and add it to the previous period, carry it forward. it gives you a gauge of the strength or weakness in a very proactive way. that's going to be my theme today, not only for this spot, but for my interview coming up that i will be teasing in a bit. but it's a bit of a surprise. all right. it's peter rosscum, illinois republican in the house. when it comes to advance-declines on the yield curve, which is where i'm going, we've talked before how the five-year note retracement from may to september was 1.39. we talked about how the 10-year was 1.47. one week ago exactly we hit this on an intraday basis, and it worked rather well. the 10-year moved below, down towards 1.24. an interesting thing happened on the way to the forum. let's show the chart. okay? now, if you look at the two-year -- actually, three-year chart of the difference between 10-year yields versus 5-year

yields, affectionately known on this floor as the fight spread, what you'll notice is it's hovering a whisker under 1.32, which is the widest -- widest the spread has been since august of 2011. now, why is this important? because, you know, we have technical analysis, and we have fundamental analysis. what you've seen is a version of technical analysis. and what i keep harping on is this 1.39 as an important pivot, because whether that threshold gets hit, most likely, you'll see the "c" curve steepening. yesterday, 1.40, but 7 basis points below it, that's why the chart looks the way it is. 10s intraday high for the yield. you can see the steepening. on the fundamental side, it's more compelling. it's always wonderful when the two mesh. on the fundamental side, read any large bond fund's research, and what you'll find is that the advancing yields are viewed to be the 10s and 30s, primarily because they are so enamored with the declines in the

five-year and shorter section of the yield curve. they are long that. they tweet about being long net. what you really want to pay attention to is the steepening effect. because there's many reasons it could occur, and it could be very profitable. these are less risky trades. but for the next wave, you really do want to pay very close attention to the five-year pivot rate of 1.39. simon hobbs, back to you. >> thank you very much, rickster. rick santelli live in chicago. when we come back, active vision selling its new "call of duty," and we'll find out if it will result in a storm of sales this holiday season. ♪

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>>. >> active >>. >> active vision saying its new game is off to a huge start. hey, julia. >> they say call of duty ghost has sold $1 billion into retail stores worldwide on its first day on sale. tuesday. now, this doesn't mean that consumers have actually purchased all those games. this is the amount in retailers' hands. the fact that it's an apples-to-oranges comparisons to

last year's call of duty which sold $500 million in the first days is raising some questions. michael packer says he thinks this could indicate lower sales than last year, and on the flip side, stern a.g.'s irvin says the first day actual sales aren't that important, because sales are expected to be slower as people are waiting to buy the game bundled with the new consoles that both microsoft and sony are law enforcementing starting next week. still, active vision is promoting the fact title and number-one game on xbox live right now. it's also saying that the average player sessions for call of duty ghost have been longer than other recent games from the franchise. though there's not a clear comparison, the top-selling game of the year still seems to be "grand theft auto v," which sold

$800 million worth in its first day, hitting $1 billion in sales in three days. now, activeision's call is coming up this afternoon, and we could hear the projections, and how well it will go with the new consoles launch in the coming weeks. >> incredible numbers there, julia. thank you so much. back to watching the markets. a lot of things are lower. the comps are lower. the transports aren't doing so hot with oil up. microsoft is up, but only adding about 6 points to the dow's 83-point game. >> abercrombie is the standout, down 10% in the wake of the full-year warning, and ebay, meanwhile, doing well. zillion yeah, variety of rumors we're working on tracking down, if, in fact, they're true. we'll see you later on. if you're just joining us, here's what you missed earlier this morning. >> announcer: welcome to "squawk on the street." here's what's happened so far.

>> my portfolio is generational. and so, if he's a great mayor or not a great mayor, in the end, he's only going to be mayor for four or eight years and somebody new will come. >> we have spent money with twitter, and we do -- they're not an incredibly big part of the budget. that's the challenge to face. how do i turn this incredibly engaging channel that people love into something that actually generates money? >> it's not always that something to like and use and buy. as you know, from when facebook opened at "x," next you know it's at 17. >> it's gone on for long enough, a long denial-denial is not good enough. i think he's microsoft's top pick. i think it's highly likely he'll be the candidate and the next ceo of microsoft. probably within the next month or so. [ bell sounds ] are you able to sell? can you sell? >> no, no. >> so you're locked in. >> yeah. >> when might you think about selling? >> to be quite honest, i've been long twitter since 2006.

i will remain long twitter. >> we recognize there are one-time things going on between retransmission and sports, and if those settle back down to where contacts were the year before they became ceo in the say, 4%, 5% range, then i think we're fine. welcome back to post 9 and "squawk on the street." getting breaking news here. let's go to kate kelly live back at headquarters. kate? >> thank you so much. breaking news from a federal court in downtown manhattan. judge richard sullivan has approved the civil forfeiture portion of the settlement between s.a.c. capital, the embattled hedge fund, and the u.s. attorney's office, just announced earlier this week to the tune of $1.8 billion, and with a series of guilty pleas expected from s.a.c. this portion of the case dealt with a civil aspect of it in which essentially s.a.c. was accused of money laundering, and the judge involved, judge sullivan, was considered to be

potentially the hurdle in getting this approved. he's been something of an activist judge, raised a lot of questions historically about cases brought before him. so this very well may get the u.s. attorney over the hump, carl, in terms of getting the entire thing approved. but now, it's down to a second judge on friday, judge laura taylor swain to rule on the criminal portion before the thing is official. >> yes. as we know, sometimes the judges don't always see the same way the prosecutors or regulators might, kate. we know you're on the case. thank you, kate kelly back at headquarters. it's almost time. there's just one day until twitter goes public right here at the new york stock exchange tomorrow morning. a great lineup for you today. the former director at facebook, randi zuckerberg is here. we'll talk to her about the similarities between the social networks and what twitter can expect on day one. twitter has also been really good for business. we'll look at how two major companies and one individual are using twitter to make some money. but twitter obviously not the only story today. we'll look at tesla's big move to the downside, check in on the future of obama care, as

secretary sebelius testifies in front of the u.s. senate today. first up, shares of tesla are down sharply after third quarter vehicle deliveries fell short of expectations, and the current quarter guidance came on the disappointing side. drew cupps is the president and chief investment officer of cupps capital management, a shareholder. guys, good morning to both of you. >> good morning. >> good morning. >> efrin, how long have you had the sell? >> since october. >> does it involve fundamentals or trying to read the momentum behind the stock? >> it's still the valuation, not even the momentum. today's momentum is pretty bad. but the valuation, right now, you're paying up for a lot of potential down the road, which it will take several years to realize. i don't think we can pay right now the price the stock is trading at. >> drew, how disappointed were you in musk's comments last night? >> not really disappointed at all.

i think that the big question with this stock is whether the company continues to be on a trajectory to be a major player in the auto industry, and the execution has been pretty phenomenal, continues to be phenomenal. last quarter was phenomenal. and, frankly, they meet every expectation they set. so pretty impressive from where we sit. >> yeah, i mean, he talks about he'd rather have a production problem than a demand problem. clearly, the issue's not on the demand side, at least that's some people's read out of the call. down 16% today. we all know the year it's had, efraim. does that surprise you at all? should we be giving this an inordinate amount of attention? >> well, this is a stock you know would be volatile. it would have either good news, and shoot up. or disappointing news and crash down. unfortunately for them, we got relatively bad news. they've been executing well.

the story for me hasn't changed a lot. it's still the valuation issue that i question. >> what turns your view -- when do you -- what takes to you a neutral, efraim? is it increasing production? is it more clarity on suppliers? more clarity regarding infrastructure buildout? >> well, it can give you a projection on when i would change. right now, we load the target price to $140, and, you know, if it's below that point, obviously, we review it. but right now, we don't even see any near-term catalyst that will change our opinion. >> at 148, we're getting a little closer. at what point do you get tempted to buy a little more, drew? >> i think this is a big-picture story, right? this is -- there's probably most of the people in the debate have a future value in the high 100s, the 200, the mid-200s. it's a matter of what point in time does that occur, and what do you pay for it today?

so that's going to be the interpretation in every investor's willingness to look ahead and pay ahead. and you have to pick your points around the opportunities, perhaps this is one being presented today. >> do you believe that bmw or gm or any of the other big automakers pose a significant threat? >> i think they absolutely do pose a threat. but the fundamental view that we have that is the major foundation of an interest in this stock is that tesla is moving faster than any other competitor in the industry. and arguably, they are smarter and leaner and quicker and more ambitious than any other company in the industry, and until that gap -- that pace of advancement gap -- closes, they continue to be on this trajectory to take a meaningful share of the market, which will be valued at more than the value of the company today. >> efraim, it sounds like something you wouldn't

necessarily disagree with. >> that's correct. i mean, they've been doing excellent job executing. there's a lot of execution risks going forward. there's even upside to what they've already announced. >> well, we will see what the coming days bring, obviously. at 148, getting a lot of people's attention. appreciate your guidance today. >> you're welcome. >> pleasure. >> tomorrow, of course, a big day for twitter. we'll cover it all for you right here at the new york stock exchange. let's send it over to bob pisani, get a closer look at what we're going to be watching tomorrow, bob, right around this time. >> oh, are we going to have so much fun. every day, we bring you the ipo show. it happened today. and we did it this morning. there's the bell podium there, where the bell is rung. there is barracuda. the ceo came down the stairs, went down over there, and here's the post where barracuda traded this morning. it was full of people. i was standing in the crowd. the ceo traditionally makes the first trade, and then the ceo came right over here, right onto our set, right there. there's carl standing right there, and did an interview with carl and jim. of course, david, as well. we're going to do that again tomorrow. we'll take it to a whole other

level, a better level, a higher level. twitter will trade right here. here's the man of the hour, that's glenn. it's the dmm, designated market maker. he'll be in charge tomorrow. he'll be the guy who determines when the stock opens and at what price. this place is going to be filled with 00s hundreds of traders. from 9:00 to 9:30, we'll give you an exclusive look. we'll be with scott cutler, head of ipos for the whole operation. he'll describe how the process happens, how do you build the book, how do you determine what the price will be? how do you deal with the orders? he'll walk us through it, explain generically how the process happens. then, 9:30rks the bell rings. we'll step to the other side. we'll be outside, right here in the crowd, right next to them. and we're going to watch the whole process. now, the stock isn't going to open immediately. more than likely, it will be past 10:00 before it actually does. but cutler will be here the entire time. we'll provide minute-by-minute analysis of how the market is evolving, how the indications

that will be put up here on the board look, and how you get to that process overall. this is going to be very, very exciting. it will be a whole hour, and perhaps an hour and 15 minutes before we actually get the pr e price, the stock to open. and once that happens, guys, of course, the ceo, mr. costolo, will walk around the bend here, and there's our man carl, and he'll be talking to carl and all of the rest of the guys when that happens. >> safe to say, bob -- >> a great day, a lot of fun. we have an unusual way to look at this tomorrow. >> safe to say, an ipo's never been covered quite like this. >> not like this before. we're proud. it's first, exclusively, on cnbc. >> we can't wait, bob. thank you so much. our bob pisani walking us through some of what we can expect tomorrow. make sure you keep it here. we'll have full coverage of all things twitter right here on cnbc. so as twitter gets ready to go public, what can the social network do to keep bringing in new users? we'll ask that question to randi zuckerberg, former director of marketing, sister of mark

zuckerberg, of course, after the break. first, rick santelli talking to pete roscum today. >> absolutely. interesting guy. on the house ways and means paper and some of the local papers have been interviewing him and others on the committee like cbo reports. i'm going to use the advance-decline analogy, and we'll talk about the affordable care act. it will be at the bottom of the hour, and i tell you what, i'm a coin guy. i won't talk about subjective issues about the rollout. i'm going to talk numbers and facts, and it should be enlightning. tune in bottom of the hour. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity.

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[announcer] tempur-pedic.the most highly recommended bed in america. now the fun begins! dow'she the dow's up 73. look at some consumer staples this morning, one of best-performing sectors on the s&p. dominic chu has more on that. hey, dom. >> hey, carl. so some of the big names helping the s&p consumer staples sector to stay in the green include molson coors, and they had earnings that beat analysts estimates despite sales that fell short. the partnership with s.a.b. miller in the united states reported a 12% increase in profits. on the liquor side of things, though, going over to beam. they're also on the rise around a percent. beam is behind smart bourbon. we'll finish off with the big-box retail giant that, carl, you know a lot about, costco,

one of the best gainers in the consumer staples sector. back to you. >> very nierce, dom. we want to dre' your attention to the nasdaq 100. look at the intraday chart. being dragged lower by a lot of the names that have been the high flyers. sears holdings, priceline, best buy. they're all among the top losers on the 100 today. and one reason why we did see the drop-off about half an hour ago. in the meantime, randi zuckerberg has been on the front lines of the social media revolution, since her early days at facebook. today, she's head of zuckerberg media, and now out with two books, uncomplicated, untangling the wired lives, and a children's book called "dot," and randi joins us at post 9. great to have you back. >> one book wasn't enou-- ambit enough. >> we've wondered if anyone has

done this, coincidence books, pitched to the publisher together. >> thanks. not that i have heard. harper said it was the first time. i felt that technology, it encompasses all of our lives from very early on today to adulthood. so i think it's a great topic to put out both in adult and a children's book. >> what do you think about the book for grown-ups? the message is what? >> it's about finding tech-life balance. i talk about my own complicated relationship with technology, growing up on the front lines of social media, working with a sibling, a lot there that's complicated. in our lives in general, we've gone -- we've swung so far to being 24/7 connected that tech is almost overwhelming us from living our lives instead of enhancing our lives. and i talk a lot about how rediscover the balance in your life again. >> it's funny. a lot of investors are trying to get their heads around this, too. if they're new to these platforms, certainly they'll be new to twitter stock when it opens here tomorrow. >> mm-hmm.

definitely a growing trend with consumers. consumers are thinking more around unplugging and disconnecting and how to regain the balance, and the consumer social media platforms need to cater to consumers feeling that way. >> do you think we're going through this era that we'll look back on in 20 years and think that was ridiculous. what were we doing exchanging information so quickly? >> i don't know if we'll think it's ridiculous. i just think that, you know, in the early days of the internet, sites wanted to amass the most eyeballs as possible. it was all about eyeballs, eyeballs, and then engagement. it became very valuable. the same is true with social media. it was about amassing as many friends, as many followers, as many connections. now, it's about the right friends, the right connections, the right followers. i think brands are seeing that. people are seeing that in their own lives. and it's just a new era of how we're using these sites. >> here's a look at the battle of obviously the ipos. there's facebook. and, you know, it's been said, randi, when your private, you are, as a company, trying to

grow your user base, right? >> yeah. >> that's the end-all-be-all. when you're public, you have to make money on it. even the last call out of facebook, there's a limit to how many ads can you stack in the newsfeed before users revolt. i assume that's an issue that twitter will face. >> i think it's an issue all of the sites face. you're always walking a fine line between having the best user experience possible. of course, all of the sites are free for people to join. so the only thing you have is an amazing user experience, and you want to keep it great without cluttering it with ads, but on the other hand, you also want to make some money, so it's a very fine line all of the sites have to work. i talk a lot about twitter in my book, about the early days, about when i first realized twitter was a force to be reckoned with. and so, i'm excited for the ipo tomorrow. >> how do you think it will go? how do you think the shares will do? >> you know, i have -- if i could predict that, i'd be sitting here on the floor of the stock exchange. you know, what i do know is it's

been an amazing platform for social good, for giving a voice to people who haven't had a voice, for politics. and i think it's a testament to all of the social media companies growing and growing and becoming really global businesses. >> the last thing is facebook has -- i don't want to say stolen or copied, but certainly whether it's a hashtag, whether it's instagram video taking on vine, there's been a sense they are trying to do some of what twitter's already done well. you think that's true? >> i think just you have to engage users in new ways today. some of the things that worked in the past, now it's all about visuals. it's all about giving people -- people are savvy with the camera phones. they want beautiful filters, beautiful photographs, video. it's the number-one thing that people want to do now. they want to tell their story. and so, i think, you know, it's all of the sites just figuring out what users want and figuring out what the hashtag has now become the generic tagging symbol of the internet.

>> it's true. it's true. a lot of -- >> hashtag awesome. >> randy, congratulations on the books. >> thank you. thank you. >> great insight today. good to talk to you. there's a look at it, "dot" and "dot-com." >> thank you. digital coupon side retailmenot was one of the more successful ipos, jumping over 50% since it started trading back in july. what can the ceo tell us about twitter tomorrow? we'll ask the ceo when "squawk on the street" comes right back.

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♪ ♪ retailmenot, u.s. and u.k.'s large digital coupon site made a nice pop, 31% on the first day of trade.

since the ipo in july, company's up a healthy 50%, and to give us a feel of the ipo market and discuss the company's quarter, cotter cunningham is the ceo of retailmenot. he joins us again from austin. cotter, good to have you back. good morning. >> good morning, carl. how are you? >> i'm good. it's nice to talk to somebody not too long after that big day in july, to get their sense of how it went, how it felt, how public life is different from private life. can you talk about that? >> sure. well, i think i knew what i was getting into. i'd been the coo at bankrate for eight years prior to coming here, so i knew what it was like to be a part of a public company. that said, of the 400 employees, i bet only four, five of them had been a part of a public company before, so we had to spend a lot of time talking to them about what it was like being a public company, the dos and don'ts, and the excitement they felt on the day we went public was amazing. we had the bell-ringing here in austin. we had a big celebration. it was really a great day for our company. i think people really enjoyed it. of course, we celebrated and went back to work.

>> 31%, almost 32% the first day. how do you communicate to your employees to try to keep them to get their heads together, right? obviously, you're in this for a long, long haul. and there must be some -- you must have to push back on the idea that this could continue forever. >> you do. and so, what we did is we have a big all-hands meeting every tuesday, and we showed stock charts have companies like linkedin and homeaway, successful companies, and all of them had great runs and not-so-great runs in the stock price. we tried to say, look, this is, as you said, a race, not a sprint. ignore the day-to-day hops and just focus on what we're doing and the stock will pay off long term. and so far, it's worked for us, obviously. >> obviously, you know, have to talk to you about -- the retail picture looking right now. we're going into a holiday season, cotter, we know the calendar is shorter.

a report out yesterday, it could cost retailers $1 billion trying to make up the ground. do you feel the pressure? >> we do a little bit. yesterday, we reported earnings as you mentioned, and we talked to the analysts about our concerns around going to the shorter calendar. we just don't know is the truth. i think the good news is, retailers are hyperaware of the shortened calendar. so there'll be no shortage of interest in doing what we can to increase sales and revenue around that time. everybody is aware of the distinction. my own opinion is, you know, you still have to buy those gifts. you still have to get a wife for your wife, your brother, your cousin. what we may lose out on is some of the self-purchase. you know, i'm going to pick up a pair of sunglasses for myself while i'm out shopping for the family. we may lose a little bit of that. you still have to buy a gift. you can't show up on christmas eve empty-handed. [ laughter ] >> obviously, yeah, you've been to my house. >> yes. >> finally, back on the ipo subject, cotter. we got 16 new issues here this week. i mean, it is a busy week.

it's been a busy year. a lot of people looking for the top in the ipo market. do you feel like you got in just in time before that window began to start closing? >> no, you know, we really didn't think of it that way. we wanted to go when it was best for the company. obviously, there is a marking, timing element to it. as you know, you sort of play your hand and then have to go as the market -- as sort of the calendar works. and so, we made a conscious decision not to try to time the market or play it in any way, but instead just go when it was best for us. obviously, it's worked out. but i think it was the right angle. >> cotter, we love getting the guidance from you, and look forward to having you back. thank you so much. >> thanks so much. >> cotter cunningham joining us from austin, the ceo of retailmenot. hhs secretary kathleen sebelius back under the microscope today. she's testifying on obama care in front of the senate. we'll get more answers on the troubled rollout of healthca

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>> hhs secretary kathleen sebelius facing the music again this morning, this time in front of a senate panel that worried about a train wreck a few months ago if obama care didn't start

improving. what is sebelius doing to reassure the same senators today? bertha comes is in washington with more. good morning, bertha. >> good morning, carl. senate finance chairman max baucus certainly was not easy on health secretary kathleen sebelius. he was the one who said he worried this would be a train wreck. one of the things he asked her about this morning is why not take down the site and get everything fixed, even if it's just -- it's going to take a few weeks or so, rather than having this drip, drip, drip of bad headlines when they make one step forward, two steps back. the secretary said she'd been advised that that wouldn't actually help, that it was better to continue to make fixes and see what was happening in realtime. one of the things senator baucus did get out of her is a little more detail about just how many fixes they have to make. >> how many of them? items in the punch list, and which of them have been punched out, and when do you expect them all to be punched out, and when do you expect to do the

end-to-end testing? >> i would say a couple hundred functional fixes that have been identified, and they are in priority grouping. the first series of them have been under way. >> that is interesting, because every time reporters and others have pressed the administration, they have not really given even that much of an indication, even though that wasn't a huge list, in specifics. interestingly, the republicans continue to hammer at this issue of plans that have been cancelled, people whose plans they liked having been cancelled, and now, they may face higher premiums. one of the biggest and sharpest criticisms coming from a fellow kansas, senator pat roberts, who once again repeated his call for the secretary to step down. >> your main goal should have been to protect americans to lessen their risk and to ensure

their safety. but in your zeal to implement this law, not warnings, not advice, not counsel would deter you from implementing the exchanges. you have said america should hold you accountable, which is why today, madam secretary, i repeat my request for you to resign. >> he didn't have any questions, that's all he wanted to say, carl. back to you. >> all right, thank you very much, bertha coombs. interesting back-and-forth regarding the kansas officials. in the meantime, ways and means committee chairman dave kemp issues a subpoena to provide the enrollment data for the exchanges. let's get to rick santelli in chicago for more on that. hey, rick. >> carl. you read my mind. that's where i want to start, with congressman, illinois representative in the u.s. house of representatives, peter roskam. welcome. >> great to be here. >> i'll chain you here to the post. >> fair enough. >> politicians want to run away from me. >> all right, bring it. >> in terms of the subpoena by

mr. camp, tell me what you know about that, why it was requested, and, you know, what's the problem? >> we had the -- here's the problem, we had the director of medicare before the committee not long ago, the last week or so. she was asked repeatedly what are the enrollment numbers? how many people do you have in, so forth. very cagey, very dodgy, all avoidance-sort -- all-avoidance behavior, which is to suggest they know the numbers. >> is there any doubt in your mind -- off the record, as the camera rolls -- of course, they must know the numbers. >> of course, they do. >> that would scare me about the structure of the technology even more. >> they're playing a very cagey game, and they're trying to lower expectations, after raising expectations incredibly. and now, there's -- it's just a mess. and so, they're trying to roll out information -- >> you ever trade stocks by congressman? >> buy low, sell high, that's what i know. >> i'm going to talk about advance versus decliners. america, here's a great way we should find a metric for the affordable care act. we should take the advancers.

how many people are enrolling, which you're trying to subpoena, which they say they'll make available mid-november, versus the decliners, which are all of the people dropping out. listen, i want to keep this on the kwaunt, but anecdotal evidence everywhere suggests the decliners are way ahead. more people being displayed. versus how many are enrolling. that isn't a good thing. >> no, it's not a good thing. remember, the premise of the affordable care act was it's all going to be great. everybody will have coverage. it will be affordable coverage, we were told -- >> and this is above and beyond the rollout. there are issues here, proof, we have proof, congressional budget office, please put it on the screen. a projection for the next 10 year, from 2013 to 2023, the number of uninsured. the lowest number on this, you can see, midat 30 million. but 10 years from now, still at 32 million. here's my question. why are we going through this ordeal, why are we tearing the country apart if we end up no better after 10 years? >> that's right. all that happens, rick, is it's

a big shift from one group of uninsured to another group of uninsured. and ironically, the first group of uninsured -- >> what does the government have against the first group that will be uninsured, that's insured now? >> that's right. even if you get your coverage, it's not the same coverage. i've got a constituent in the northern part of my district whose coverage dropped 2x. >> real quickly, out of time, my biggest beef, why do you 537 people, think the staff that works for you folks should be entitled to choices in subsidies that the rest of america can't get? i know that we'll lose our staff. what about people that can't afford the extra premiums? i think it's reprehensible, congressman. >> two things, all roskam staff are in the exchange, so am i. >> but they're still getting subsidized. aren't they? >> boo! >> this is what i we shut it down 16 days over. >> we have to work harder. >> thanks, rick. thank you very much. >> guys, back to you. >> all right. thank you so much, rick santelli. we are one day away from twitter's ipo, and now, more than ever, a lot of businesses

are using twitter to advertise and drive sales. we're going to talk to the chief marketing officers at dunkin' donuts and wendy's. first, check out this ad that wendy's made using tweets about the pretzel bacon cheeseburger. >> wendy's, the pretzel are making me thirsty. >> #someonehadtosayit. >> the closest one is 5.5 miles away. my life is so difficult. >> #twit per silence. . [ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account.

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♪ ♪ all right. coming up on "the half," tomorrow's big day, the plays you need to know today. plus, the other ipos you don't want to overlook. plus, look out below. high flyer tesla taking another tumble today. how low will it go? and we're looking for the next great trade. one of barron's top 100 financial advisors is here, and he says forget the bubble talk, there's tons of opportunity. he'll tell you where to look, and also, tom baric of colony capital is with us for the next hour, with the great trades. carl, we'll see you in a bit. >> all right. thank you so much, scott. now, more than ever, big companies are turning to social media and twitter specifically to create marketing and ad campaigns and to engage in realtime with customers. this morning, we're going to talk to the top marketing

executives from both dunkin' brands and wendy's. we'll start with dunkin'. we're watching the first use here of a tv ad created entirely on vine. of course, owned by twitter, which dunkin' debuted during espn's monday night football earlier this year. tom costello is from dunkin' brands and joins us from san diego. john, good morning to you. >> good morning. >> you guys have been aggressive. people talk about the #mydunkin, and how long has that been in the pipeline, and where do you think the whole thing is headed? >> we think social media can be very powerful, and we've been engaged with twitter and facebook since 2008, 2007. i started my career at proctor & gamble and learned most powerful marketing tool is recommend by a friend. and i think that social media has the potential to take that to the next level, because it's where people are increasingly

going for information and recommendations. so we think there's huge potential with social media and with twitter, but the advertising on there is very different than traditional marketing and media. >> yeah. what is different, john, about twitter? people talk a lot about their ability to target the specific information they have about your interests on your interest graph. do you get the sense that you can more -- that you can more effectively target a single consumer using them versus another platform? >> you know, absolutely. broadcast media does tend to work very, very well for dunkin', but with broadcast marketing and media, you're really putting your message out there and hoping that someone is seeing it. on twitter and other social media, you're entering into a conversation. and if you enter that conversation in a way that adds real value, you can build that one-to-one relationship with those guests, and really provide them with information, with an

opportunity to engage with you, and fun that's even better. >> john, you worked for some big players. you mentioned proctor & gamble. you mentioned home depot. i still remember when facebook was going public and the doubts that gm had about social in general, but specifically about facebook, and for a long time it wasn't clear that gm would ever play in that space. has that debate been solved? has that been settled? >> you know, i think it varies by marketer. and i think the key thing is understanding that social media is really a conversation and a dialogue, and you need to find new techniques that are effective. you know, you mentione mentioned #mydunkin. in that case, our marketing team and agency holiday are literally searching through thousands of tweets, and then contacting those people and turning those tweets into real advertising. so i think it can be very effective if, in fact, you use the right technique. >> finally, john, you know, you

can be a marketer, and you can be on twitter and you can never pay them a dime if you don't want to. what percentage of your ad budget goes to twitter, and how will that grow? or do you disclose that? >> yeah, we don't disclose the specific percentage, but i can tell you that our investment in digital and social media is growing double digits and growing faster than our investment in conventional marketing and media. >> well, as a tv animal, i hate to hear that, but i'm not surprised, john. thank you for your guidance today. john costello of dunkin' brands joining us from san diego today. of course, dunkin' not the only company combining twitter with television. wendy's law enforcemeunched a t campaign for the pretzel sandwich that turns real tweets into soap-opera-style love stories. craig joins us this morning from columbus, ohio, today. good to have you with us, as well. >> great to be here, thanks for having me on. >> where does twitter fit for you guys?

>> well, i tell you, you know, we believe that the days of the consumer sitting back and waiting for tv ads to run are no longer. consumers want to engage with your brand when, where, and how they want to engage. and social media is a huge tool for us to be able to take that message and to have that one-on-one interaction and engagement with the consumers. >> are the dollars going to social, and by that, we mean twitter and others? is it being taken away, as john suggested, from broadcast, from other portal businesses? where are you doing less of because you're doing more on social? >> well, you know, i think what really works for wendy's is we believe in integrated marketing. we believe in the power of tv advertising. we believe in the pow irof social and mobile. we believe in the power of public relations. and we try to get those to work synergistical synergistically, so it doesn't come across as doing less, it comes across as a much bigger program that can surround consumers from all different

directions and make all of the markets impactful. >> we mentioned the pretzel campaign, looking at the tv commercials there. is twitter better used when you have a new product you want to roll out? is it better used to maintain awareness about the brand at large? is it both? >> well, you know, twitter's a great listening tool. when we launched our pretzel bacon cheeseburger in the test market, we actually picked up on the passion the consumers had for that product from listening to tweets the consumers had generated. then we thought, how do we put that to work for us in the consumer's own words? we took those tweets, made song lyrics and had talent sing the pretzel love songs and distribute it back out through social media. the program was incredibly successful. 85 million uniques we were able to get through the social media program. >> any idea? i mean, we watch the same-store sales, obviously, but i assume you guys have done some work looking at whatever -- what social added incrementally to

same-store sales in a given month or quarter. is it significant? >> well, i tell you, we did work with nielsen, who measures tev ra -- tv ratings, and we can prove we're reaching incremental consumers, and that means they're seeing the message and hearing about our brand and our products through social media. that's how we know it works. >> finally, craig, i'll pose the question to you that i asked john over at dunkin', and that is, what's the impetus for a marketer to spend money when the site can be used for free? >> well, there's a lot of different ways to use this, and, you know, we use it for listening, which doesn't necessarily cost us anything. but, you know, when we want to have a program that works on all cylinders, you know, sometimes it pays to invest and we're watching those rois very strongly. and as long as we can get an roi we feel good about for our system and our brand, we're going to continue to invest in those channels. >> yeah, that is the magic key. that is true. craig, great to have you, as well. thank you so much.

craig boehner joining us, the chief marketing executive officer at wendy's in columbus, ohio. speaking of fast casual and fast food, big mac meet the big king, burger king bringing back the big king hamburger which looks, sounds, might taste a lot like the big mac. more on that in just a moment. switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. with investment information, risks, fees and expenses i'm bethand i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card.

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good tot is it good to be the king? burger king is hoping so, rolling out the new big king burger which upon first glance looks a heck of a lot like the big mac. so will the big king bring a big bounce to burger king sales? jane wells have in seattle with more on that. good morning, jane. >> carl, two all beef patty, special sauce, lettuce, cheese, pickles on a sesame seed bun. get as whopper from burger king, in the biggest smackdown, burger king has come out with the big king, which looks like the big mac, and on the video, the king on the left, the mac on the right. they look an awful lot alike. we showed the picture, and we said, what is this? >> it looks like a big mac. >> a big mac. >> oh, i like this. >> because it is a sesame -- >> it's burger king. >> oh, burger king. oh, wow.

>> would you eat it? >> i'd eat it. >> well, burger king used to sell the big king in certain markets, but without the middle bun, which it now has. to be even more like the big mac, the company's been making a slew of changes to its menu to be competitive. the news comes out as mcdonald's recently dumped heinz ketchup because the new ceo of heinz came from burger king. how do the big mac and big king measure up? big versus big. i went out and bought one of each. yes, that's what they really look like. not quite like the ads. big king on the left, the the big mac on the right. they may look alike, although the big mac has more sesame seeds. how do they taste? first, the big mac, which i know. yep, got that thousand island flavor. now, the big king. flame broiled. you can tell the difference in the meat. and you can taste the onions more.

basically, it tastes like a burger king patty inside a big mac, which isn't bad. so is mcdonald's threatened by the big mac attack? the company tells us, quote, we're focused on our business and our customers. they started selling them, carl, at this burger king, and they sold 20. >> well, they say that imitation is the sincerest form of flattery, jane. that was a riveting taste test, i must say. jane wells in seattle for us. yeah, watching the burger king/mcdonald's battle. thank you so much. as we get ready for twitter's ipo tomorrow, we want to look at some of the people who have made a name for themselves thanks to twitter. our next guest built up a huge following and even won a journalism award for a twitter parody account. we'll tell you the story. [ horn honks ]

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over three years our next guest generated nearly 3,000 twitter posts over 73,000 followers, all while remaining anonymous. he created the twitter handle atruthbourdain, a mashup of rick rychel and anthony bourdain that poked fun at the culinary world. ruth bourdain got a book deal and won an award while having a secret identity. this summer, food blogger josh

freedland unveiled himself, and he joins us this morning at post 9. josh, great to have you, good morning. >> thanks for having me. >> i love this story, because it's unclear what you would be without twitter, right, and without this parody account. >> oh, yeah. >> how did you get the idea? how did you keep it secret for so long? >> well, first, there had been a number of the parody accounts. there was a steve jobs parody on twitter, which was excellent. and i just wanted to put together a parody of the food world. putting together bourdain, which is this, you know, acerbic, drugged, obscene, sexual approach, with ruth rychel, a little more poetic, just seemed like the right thing to do. >> yes. give us examples of the things you were tweeting. do you remember your favorites? >> i don't think i can talk about it on air. it's very dirty things with food. >> at what point did it graduate from -- by the way, a look at you. [ laughter ] at what point did you realize this was becoming something bigger than you thought?

>> i think probably the james beard award. that was one thing. it was rec niegs -- recognition by the actual establishment of this ridiculous thing i was doing. >> and at that point, did it make you reconsider what twitter was capable of, the power of the platform, the power of your reach? >> oh, definitely. well, first of all, they had never given an award to somebody on twitter in the first place. this is an award that usually is given to people who write books -- >> absolutely. >> -- or chefs for their careers. there was also a little bit controversial, too. >> you remained anonymous. you didn't come out to accept the award, right? >> right. >> that must have been hard. >> it was very hard. i was home putting my daughter to sleep in a darkened room, and read about it on twitter. >> oh, my gosh. [ laughter ] and you later made the decision -- when was it? in july, to come public. what was behind that move? >> i just -- you know, it was very hard to keep the secret for so long. and i felt like i had probably done almost everything i could do, all of my goals with the account. you know, i did the twitter

feed. i did a book. james beard award. and i thought maybe it was time. i was not going to take this to my grave. >> yeah. when you think of twitter now, then, do you see it as a powerful force for good? or does the parody element make it more dangerous, too dangerous? >> i think good parody, it's all in good fun, and you can appreciate it, you can see it for what it is. this was never a mean-spirited, you know? obviously, you know, if you get into mean-spiritedness, it's not for good. this is for poking fun at what really a lot of people who love food, like myself, can see some of the, you know, the overreaches. >> you were an earlier doctor, too, you had your own personal account four years ago. >> yeah. >> which is before a lot of people had heard of the service. what got you interested in the first place? >> i loved just the interaction. you know, also, for food, people post photos from their meals, and, you know, restaurant reviews. it's become, you know, the most up-to-date way of getting information on the food world. >> you got any guesses as to how the ipo is going to go this

week? >> oh, my god, i have no idea. [ laughter ] >> well, it is interesting. it's a lesson in sort of what the platform's capable of, and i have to imagine, you have to -- you would probably your career would not be where it is without this thing. >> oh, no way. impossible. >> josh, thank you for coming in. i think it's something people will keep in mind in the back of their heads as they become used to the service, figure out what it is, and whether or not they'll buy the stock tomorrow. thank you so much. >> okay, thank you so much. >> josh friedland, and the dow, we should mention, is hanging in there, up 80 points. and let's get over to wapner and headquarters at "halftime." what you should do with the most anticipated ipo of the year. the tesla shares are hitting the skids today. is the next high flyer shares going even lower? rob of ubs is one of the top

financial advisors with $5 billion under management. he is with us for the hour as one of our guest traders. tom beric is the chairman and ceo of colony capital with more than $48 billion in global real estate assets. he's our guest host for the hour. it is "the half," and let's play the acti.